Struggling British department store group Debenhams warned today that its shareholders could be wiped out as a result of some of the restructuring options it is considering.
The firm said it was seeking £200m of additional funds from lenders that would give it the ability to pursue restructuring options to secure its future.
But it warned "certain of these options – if they materialise – would result in no equity value for the company's current shareholders."
Debenhams shares were down 59% in London trade today.
Debenhams said it was seeking agreement from bondholders to change the terms of some of their bonds as part of the process to secure the new loans of up to £200m from existing lenders.
It had previously said it was working on a plan to raise an additional £150m.
Debenhams has launched a "consent solicitation" for holders of its 5.25% senior notes due 2021.
This process seeks consents from bondholders to certain amendments to the existing notes.
Debenhams said a successful consent solicitation would allow it to enter into the new loan facilities.
The firm is also trying to fend off an attempt by its largest shareholder, Mike Ashley's Sports Direct, to take control of the business.